Arkansas allows you take a subtraction for your retirement income for up to $6,000 on your state return. If you are filing as married filing jointly and your spouse receives retirement as well, you are both entitled to a $6,000 exemption on your Arkansas return for your retirement income.
The program will not automatically deduct this income, you will have to make a manual entry within the state section.
Where to enter?
- State Section
- Subtractions from Income
- Pension Exclusion
- Enter the amount for both the Gross Distribution and the Taxable amount
For your convenience, the federal amount of the retirement income is shown for you to refer to.
Note: you cannot claim both the retirement income exemption and "65 Special" Tax Credit on your Arkansas state return. You must decide to use one or the other.